Read our beginner’s guide to the Ontology network, its native currency and how to buy ONT tokens.
Ontology is a trust network designed to be operated across multiple blockchains, providing identity verification and reputation management systems to suit a diverse range of industries. Launched in 2017 by Chinese company Onchain, Ontology will operate a dual-token structure – the utility token of the network is ONT and holding this token will allow users to generate Ontology Gas (ONG).
ONT experienced sizable price increases in the first month after launching and has since attracted plenty of attention from the crypto community. If you’re interested in buying ONT tokens, read on to find out how you can purchase them from an online cryptocurrency exchange.
Where to buy ONT in NZ
You can buy ONT on a handful of cryptocurrency exchanges, including the following:
A step-by-step guide to buying ONT
So you want to buy ONT? Here’s an example of how to do it.
Step 1. Sign up for an account with a crypto exchange that offers ONT in a currency pairing
As you can see above, ONT is only available on a limited number of exchanges, so you’ll first need to search for an exchange that offers this new digital currency in one or more currency pairings. Once you’ve found a suitable platform, you can sign up for an account by entering your email address and creating a password.
Depending on the platform you choose, you may also need to provide additional personal information and proof of ID to satisfy Know Your Customer (KYC) requirements. We also recommend enabling two-factor authentication on your account to provide an additional level of security.
Step 2. Deposit funds into your account
Once you have the necessary coins or tokens, log in to your account and look for the “Deposit” link. You can then copy the relevant wallet address and send coins or tokens to your account.
Step 3. Buy ONT
Click through to the markets or exchange section on your chosen platform and search for the currency pairing of your choice, such as ONT/BTC. Click on “Buy ONT” and enter the specifics of your transaction, such as the amount of BTC you want to spend or the number of ONT you want to buy.
Once you’ve entered all the required information, make sure you review all the transaction details (including any fees that apply) before finalising your purchase.
How to sell ONT
If you want to sell your Ontology tokens, the process you’ll need to follow is fairly similar to that outlined in step 3 above. However, you’ll obviously need to look for the “Sell ONT” link before you can complete your transaction. It’s also worth remembering that cryptocurrency exchanges only offer certain pairings, so it may not be immediately possible to exchange ONT directly for the currency you want.
Which wallets can I use to hold ONT?
Storing your crypto coins and tokens in an exchange wallet for any length of time exposes you to a higher risk of security breaches. As a result, it’s highly recommended that you move your ONT tokens into a secure wallet.
There are several options available for storing ONT. Because the network has been built on the NEO blockchain, you can store your tokens in a NEO-compatible wallet. Some wallets you might like to consider include the following:
- Neon Wallet (desktop wallet)
- Morpheus Wallet (desktop wallet)
- NEO Tracker
- NEO WALLET
Note that even though wallets are designed to safely store your tokens, hardware wallets are generally considered to be the safest option.
How Ontology works
Ontology is a public blockchain network that aims to become a trust-based ecosystem. Founded in 2017 by China’s Onchain, it offers a platform for decentralised trust systems in businesses and corporations.
With a focus on helping businesses integrate blockchain technology into their existing infrastructure, Ontology aims to establish the connecting infrastructure for a trust ecosystem. As stated in its introductory whitepaper:
Ontology is a blockchain/distributed ledger network which combines a distributed identity system, distributed data exchange, distributed data collaboration, distributed procedure protocols, distributed communities, distributed attestation, and various industry-specific modules. Together this builds the infrastructure for a peer-to-peer trust network which is cross-chain, cross-system, cross-industry, cross-application, and cross-device.
Capable of supporting multiple blockchains and systems, Ontology offers potential use cases across a wide range of industries, including finance records, medical records and even the Internet of Things (IoT). Ontology’s whitepaper further outlines a wide range of its potential uses.
What to consider if buying Ontology
Cryptocurrencies are volatile and highly complicated, so there are a number of factors you’ll need to consider before buying any crypto coins or tokens. If you’re thinking of purchasing any ONT, make sure to take the following factors into account first:
- Supply. According to CoinMarketCap, at the time of writing (10 April 2018), the circulating supply of Ontology tokens was 241,236,451 ONT. The total supply of tokens is capped at 1 billion.
- Distribution. Ontology did not have an ICO and instead airdropped ONT tokens to NEO holders in March 2018. The tokens were distributed at a rate of 0.2 ONT for every NEO held, but they were also released in two phases – half of the tokens were traded immediately, but the other half are locked until the Ontology mainnet is released (scheduled for Q2 2018).
- Dual tokens. Ontology will use a dual token structure. ONT is currently a NEP-5 token and does not release ONG (Ontology Gas), which will be used to power transactions. However, after the launch of Ontology’s mainnet, users will be able to exchange NEP-5 ONT for ONT on the mainnet, which will also start to release ONG tokens periodically.
- NEO/Onchain/Ontology relationship. Ontology is built on the NEO blockchain and its tokens were airdropped to NEO holders. This close relationship between NEO and Ontology reflects the fact that Onchain, Ontology’s parent company, has close links with the NEO project. However, NEO and Onchain are separate entities.
- Still in development. It’s worth remembering that Ontology’s network is still being developed, so it’s not yet known whether this project will be able to deliver on its potential. The launch of its mainnet in Q2 2018 will be a crucial milestone for Ontology in coming times. You can also find out more about the technology behind the platform by downloading its three whitepapers.
- Availability. As ONT tokens are still only available on a limited range of exchanges, it’s worth considering whether this current lack of widespread accessibility may have any effect on the level of demand for the tokens.
- Competition. Finally, remember to consider how Ontology stacks up against other similar identity verification projects, for example Civic (CVC), before deciding whether to buy any tokens.
By assessing these and more factors that could potentially impact the value of ONT in the future, you’ll be well placed to make an informed decision about whether to buy the token.
At the time of writing, the author holds IOTA and XLM.